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The Average Transaction Price (ATP) of new Cadillac vehicles rose 4.7 percent year-on-year in May 2022.
According to latest report by Kelly’s Blue BookThe new Cadillac ATP in May 2022 was $71,479, up from $68,284 in May 2021. Last month’s figures showed a slight increase compared to April 2022, where the new Cadillac ATP was $69,304.
For reference, the average luxury vehicle buyer paid $65,379 in May 2022, up $709 from April. On average, luxury vehicles traded at $1,030 above the MSRP last month, continuing the trend of selling over sticker prices, which has been happening every month in 2022. Interestingly, right now in 2021, vehicles are selling for around $400 below the MSRP.
The industrial ATP was $47,148 last month, up 13.5 percent year-on-year. KBB said that the rise in ATP could be attributed to its record high share of luxury vehicle sales. Luxury vehicles accounted for 17.3 percent of sales across the industry, up from 15.9 percent year-on-year and 13.1 percent pre-pandemic, in May 2019.
Meanwhile, incentives fell to record lows, accounting for just 2.5 percent of vehicle ATP across the industry, a reflection of the low supply, high demand scenario that continues to plague dealers and automakers. This is demonstrated by the lack of incentives offered for the purchase of the highly lucrative Cadillac Escalade, a vehicle that Cadillac has not offered any incentives for in over a year.
While the global microchip shortage and other supplier issues are nearing completion, high ATP will likely become the norm for the foreseeable future.
“Prices for new and used vehicles are showing signs of stabilizing, and price growth is likely to ease over the summer,” said Rebecca Rydzewski, manager of economics and industry insights research at Cox Automotive. “However, no one expected prices to fall, as tight supply in new markets will keep prices at high levels through 2023.”
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